Nominal Gold & Gold-Oil Ratio

Gold is getting into an area at which it could take a hit at any time. This
would be healthy and perhaps add sustainability. The chart says our 920 target
remains locked and loaded, but I would rather get there with a little angst
in the mix as opposed to a hyped up blow off. Shorter term indicators are becoming
over bought and a test of the breakout to all time highs would be healthy.

It is interesting to note that oil's all time highs are being jiggered in
the media to adjust for inflation and not panic people (it's only at the 1970's
levels!) while the barbarous relic of the past has not nearly kept up with
inflation. "Who would own such a bum asset?" asks the average paper pusher.
This is a big part of the reason for our $2000+ eventual (years out) target;
catch up moves can be a bitch. Meanwhile, in the here and now, we await a break
of the downtrend in the Gold-Oil Ratio. Here is a chart with an interesting
correlation to the USD for your consideration.

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of interest.